What states are PIP states?

The no-fault states for car insurance are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In the 12 no-fault states, each driver’s car insurance provider pays their own medical claims after an accident regardless of who was at fault.

No-Fault Insurance States

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

A no-fault insurance system limits the ability of drivers and passengers to sue for additional compensation. Drivers in no-fault states can sue for injuries only if they are determined to be “severe” – the legal definition of which varies from state to state. No-fault rules only apply to injuries, however. Property damage claims in no-fault states are still paid by the at-fault driver’s liability insurance.

Special Types of No-Fault States

"Choice" No-Fault States

• Kentucky
• New Jersey
• Pennsylvania

Of the 12 “pure” no-fault states, New Jersey, Pennsylvania and Kentucky are the only ones that give drivers an option to choose between buying a no-fault insurance policy and a traditional auto liability insurance policy.

"Add-on" No-Fault States

• Arkansas
• Delaware
• District of Columbia
• Maryland
• Oregon
• South Dakota
• Texas
• Virginia
• Washington

Besides the 12 no-fault states, some “add-on” states have auto liability insurance laws that are a blend of the no-fault and at-fault insurance systems. These add-on states are not considered to be true no-fault states by the Insurance Information Institute because they do not restrict or place limits on a driver’s right to sue for additional compensation.

Finally, at-fault states follow a tort system, which assigns responsibility for an accident to a driver or drivers. At-fault states also allow injured parties to sue negligent drivers for injuries, as well as pain and suffering, without restrictions. Most U.S. states are at-fault states.

Insurance Rates in No-Fault States

Drivers who live in one of the 12 no-fault insurance states can expect to pay more for auto insurance than those in at-fault states. Insurance fraud is more common in no-fault states, given that claims are paid regardless of who was at fault, providing an incentive for some individuals to exaggerate the extent of their injuries. Those heightened rates of fraud, combined with mandatory PIP insurance, raise costs for auto insurers, which are passed on to consumers.

It should be no surprise that the three most expensive states in WalletHub’s Cheap Car Insurance Study – Michigan, New York, and New Jersey – are all no-fault states. So if you live in a no-fault state or will be moving to one, be sure to compare quotes so that you can get an auto insurance policy that fits your needs and your budget.

You will need personal injury protection (PIP) insurance if you live in one of the 12 states that require it. Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah all require PIP insurance. You may also need PIP if your health insurance has low coverage limits or if you drive with passengers who could hold you responsible for their medical expenses in the event of an accident.… read full answer

In the 20 states (plus Washington, D.C.) where it is required or offered as optional protection, PIP covers medical expenses for the policyholder and his or her passengers after an accident, no matter who was at fault. However, PIP is not available at all in the 30 other states.

Always check with your insurance company or an agent for specifics on what coverage is required or available in your state before you determine what to include in your policy.

What Does PIP Cover?

• Ambulance fees
• Health insurance deductibles
• Medical treatments
• Surgery
• Rehabilitation
• Prescriptions
• Lost wages
• Home care such as cleaning or child care
• Funeral costs

If you are in a car accident, PIP often works in conjunction with your health insurance coverage. Most health insurance deductibles must be paid before benefits start to be paid out, but your PIP may have a cheaper deductible, or no deductible at all.

How Does PIP Work With MedPay?

PIP insurance may overlap with another kind of car insurance known as Medical Payments, or MedPay. Like PIP, MedPay covers the costs of medical care resulting from of an accident, no matter who was at fault. Also like PIP, MedPay covers injuries to any passengers in your car. However, it does not pay for lost wages, rehabilitation or home-care services, which PIP would cover.

The way PIP and MedPay may work together depends on your state’s laws. If you live in one of the 12 states that require PIP, MedPay could be redundant. State limits on PIP vary widely, from $3,000 in Utah to New York’s $50,000 requirement. If your state has a low upper limit on PIP, MedPay coverage could act as a beneficial supplement. In a couple states – namely, Maine and New Hampshire – MedPay is used instead of PIP.

Florida car insurance laws require everyone who registers a car in the state to carry at least $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). This is not much coverage. In fact, Florida has the lowest insurance requirements in the U.S. (except for New Hampshire, which requires no insurance).… read full answer

Minimum Coverage Required by Florida Car Insurance Laws

• Personal Injury Protection: $10,000 of coverage is required.
• Property Damage Liability: $10,000 of coverage is required.
• Collision: not required under Florida car insurance laws
• Medical Payment: not required under Florida car insurance laws
• Uninsured/Underinsured Motorist: not required under Florida car insurance laws
• Bodily Injury Liability: not required under Florida car insurance laws

Florida Car Insurance Laws for Seasonal Residents

In addition to all cars registered in Florida, Florida’s car insurance laws apply to any car that is driven in the state for more than 90 days in a 12-month period. This means Florida’s large seasonal population must meet Florida’s insurance requirements as well.

Seasonal residents often need to add PIP to their out-of-state policies, since this type of insurance is only required in 12 no-fault states. Residents of the few states with lower mandatory PDL limits also may need additional property damage liability coverage to drive legally in Florida.

How Florida Car Insurance Laws Work

Florida requires its drivers to carry PIP insurance

PIP pays the policyholder’s basic medical expenses, no matter who causes an accident. However, Florida doesn’t require bodily injury liability—the insurance that pays for the other party’s injuries.

Florida’s no-fault law is limited

“Fault” becomes an issue in Florida when injuries are permanent or serious (costing over $10,000 in medical bills and/or lost income). In these cases, victims can sue the at-fault driver. To ensure victims can be paid, the at-fault driver in an accident has to provide proof of “financial responsibility.” The most common proof is bodily injury liability insurance. Drivers also have the option of posting a bond of up to $20,000.

Florida’s PDL requirements are relatively low

Property damage liability insurance pays for damages a driver causes to other people's property in a crash. The damage can be to cars or other property such as fences or buildings. Florida’s PDL requirements are also relatively low. Most states require higher minimum limits, although there are some that require $10,000 like Florida and four that require only $5,000—California, Massachusetts, New Jersey, and Pennsylvania.